All that needs to be said about government involvement in the market was revealed to us by Barney Frank yesterday (6/4/09). GM (the newly formed Government Motors) had determined to reduce costs by rationalizing logistical needs in the face of foreseeable business volumes. To that end, GM decided to consolidate parts warehouses and a GM distribution center in Norton, MA, was slated to be closed.
Enter Rep. Frank (D – MA), a veteran of the auto industry, who issued an-offer-that-could-not-be-refused to GM executives. The executives understandably caved and GM has reconsidered that closing
Now, the relative merits of closing or not closing that warehouse may be argued. But what is not debatable is that GM made the original decision based on an analysis of business conditions, while Barney Frank’s intervention was wholly political, intended to enhance his power and extend his tenure.
That, alone, is reason enough to look askance at government programs that might be better served by the market. Single payer health care springs to mind.
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